2022 Predictions #5 - Companies Increase Cyber Insurance Despite Soaring Costs
Since the astronomical success of ransomware starting back in 2013, cybersecurity insurers have realized that payout costs to cover clients against these threats have increased dramatically. In fact, according to a report from S&P Global, cyber insurers’ loss ratio increased for the third consecutive year in 2020 by 25 points, or more than 72%. This resulted in premiums for stand-alone cyber insurance policies to increase 28.6% in 2020 to $1.62 billion USD. As a result, they have greatly increased the cybersecurity requirements for customers. Not only has the price of insurance increased, but insurers now actively scan and audit the security of clients before providing cybersecurity-related coverage.
In 2022, if you don’t have the proper protections in place, including multi-factor authentication (MFA) for remote access, you may not get cyber insurance at the price you’d like, or at all. Like other regulations and compliance standards, this new insurer focus on security and auditing will drive a new focus by companies to improve defenses in 2022.
See more of WatchGuard's 2022 Cybersecurity Predictions here: